December 2005
Mega-success for Megasites
In an exciting development for the Megasites program, SeverCorr steel company has broken ground for a steel mill at the Golden Triangle Megasite near Columbus, Mississippi. The $880-million project is billed as one of the largest economic development projects in the country for 2005. The 1.2 million-square-foot plant will produce high-quality steel for automotive and other purposes.
TVA’s web presence was an important factor in the process of choosing the location, according to Eddie Lehner, CFO of the startup company. Lehner was looking for a large site in the South and he wanted to move fast on the acquisition. He hoped to find a site where the preliminary work had been done. Logging on to TVAed.com late one night, he found two megasites, with extensive information about each one. “All the important components of a site are there for you,” says Lehner, “[such as] incentives, transportation, and work force.” Lehner describes the Megasites program as the “gold standard” for large economic development projects. “That program has to be the template for projects of this magnitude now,” he says.
SeverCorr eventually settled on the Mississippi site for its proximity to the booming Southern auto manufacturing industry. he company expects to do business with major automotive manufacturers. The SeverCorr plant is scheduled to be operational by 2007 with 450 workers making an average annual salary of $70,000. Read more.
In other megasite news, McCallum Sweeney Consulting has certified a fifth megasite, the West Tennessee Auto Park in Crockett County, Tennessee. The site is about 60 miles northeast of Memphis and 15 miles from Jackson, with good access to interstates, airports, and a CSX rail line.
Nissan to move North American Headquarters to Tennessee
Nissan North America has announced that it will move its headquarters to Franklin, Tennessee, near Nashville. Approximately 1,300 jobs will be created by the move. Nissan has a 5.4-million-square-foot production facility in Smyrna, Tennessee, where the Altima, Xterra, and other models are made. It ranks among the most productive auto plants in North America, according to the Harbour Report benchmark study. Nissan also has an engine and transmission manufacturing plant in Decherd, Tennessee. Together the two plants employ more than 8,000 workers.
"We made a strategic decision to relocate our corporate headquarters here because of the long-term benefits associated with overall investment and operational costs,” said company CEO Carlos Ghosn. One factor in Nissan’s decision was the reliable, affordable power provided by TVA.
The corporate jobs Nissan will bring to Tennessee have an average annual salary in excess of $80,000. An analysis by the University of Tennessee's Center for Business and Economic Research estimates the headquarters facility will have an economic impact of more than $500 million annually on the Tennessee economy.
TVA Tops 2005 Utility Honor Roll
TVA Economic Development ranks right at the top of Business Facilities magazine’s 2005 Utility Honor Roll for jobs created. The magazine rated utilities according to the number of jobs created per thousand residents. TVA earned a score almost double that of the runner-up. The magazine praised TVA’s “high level of organization when it comes to its economic development approach.” It also cited as success factors Megasites program and TVAsites.com, as well as the broad array of the services it offers and the work of its target industry specialists. Read the full story.
Canadian mining company begins Tennessee operations
Hillsborough Resources Ltd., based in Vancouver, British Columbia, recently completed acquisition of assets in Middle Tennessee, and its Crossville Coal Inc. began commercial production in September. Hillsborough installed the world’s newest technology in underground diesel mining systems, making an initial plant investment of $5 million. Hillsborough plans to hire 75 people at its Tennessee mine at peak production which will be sometime in 2006. As of the beginning of November they had hired about 25 people. David Slater, President and CEO of Hillsborough, was enthusiastic about the assistance the company received during the startup process. “I am also delighted with the warm welcome given to Hillsborough by all levels of government in Tennessee.” Slater said. “Their expression of support, both tangible and intangible, were a significant determining factor in our going forward with this investment.”
TVA and partner win R&D award
TVA and American Superconductor Corporation have received a research-and-development award for jointly developing the SuperVAR dynamic synchronous condenser. The prestigious R&D 100 Award was presented to TVA and American Superconductor, a leading electricity-solutions company, by R&D Magazine.
SuperVAR is a breakthrough product that serves as a “shock absorber” for the transmission grid. It stabilizes grid voltages in a way that is particularly beneficial for industrial customers with sensitive electronic controls.
“In today’s digital economy, keeping voltage levels constant and stable is vital,” says Terry Boston, TVA’s Executive Vice President of Power System Operations. “That’s what our customers expect, and we believe that’s what this new technology will help us deliver. SuperVAR machines will help protect the transmission system from voltage fluctuations and ensure TVA’s continued delivery of affordable, reliable power to the people of the Tennessee Valley.” In 2005 TVA achieved its sixth straight year in a row of 99.999 percent reliability in its transmission system.
TVA installed American Superconductor’s advanced prototype SuperVAR synchronous condenser at an electrical substation serving a steel mill in Gallatin, Tennessee, in August 2004. The SuperVAR machine helps stabilize voltage on TVA’s grid by injecting or absorbing reactive power to minimize the sudden large voltage fluctuations caused by the steel mill during the operation of its arc furnace.
The R&D 100 awards, now in their 43rd year, name the most innovative new products introduced into the market over the previous year.
Conserving energy helps bottom line
Along with other federal facilities, TVA and its employees are taking steps to conserve energy. The recent hurricane devastation and supply interruptions brought rising fuel prices that are a challenge to business owners trying to keep costs low. Find out what you can do both at home and at work to conserve energy in this Conservation News article (PDF).
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